We gaped down this morning right on top of our Buy Envelope, before turning around and running for a gap fill. I highlighted the SPY divergences from this morning in a previous post. We got a rounded reversal that left us with a cup w. handle pattern.
While we base at these highs, the dips are being bought and looks like we're not done running higher.
Here's another perspective, showing a consolidating range while we build value at these levels.This fast time frame shows how price sold off in 3-pulses while the reversal also occurred on 3-pushes as well.I found this chart to be interesting (Daily of the SPY). I took away everything from the 3/10 macd except for the slow line (stability of trend line). What we observe is the decreasing momentum with higher prices. We're currently at a resistance level that could be denied or could run higher. We're very extended from the 20EMA but we're running on elation these days.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.